A subsidiary of Dubai-based contractor Arabtec Holding has won a SR404-million ($107.7 million) contract to build a hospital in Saudi Arabia, the company said in a statement on Saturday.

The Aldara Hospital and Medical Centre is scheduled for completion in early 2015 and will house a 105-bed, six-storey hospital and two medical centres in the Saudi capital, Riyadh. The client is Aldara Medical Corporation, the statement said.

The contract was awarded to Arabtec Terna, which is 60 per cent owned by Arabtec, the company that built Dubai's Palm Island. The company said it wants to expand in the Gulf region and do more specialised construction projects.

Commenting on the win, CEO Hasan Abdullah Ismaik said, "Saudi is rapidly developing its social and physical infrastructure, and we believe there is a strong opportunity for Arabtec to participate in construction projects in the Kingdom such as hospitals, schools and transportation."

"This is another sign that the regional construction market is returning to health,” he added.

Arabtec’s current backlog is valued at nearly Dh21 billion. Arabtec’s operations in Saudi Arabia, where the company is building a 5,000-villa project, have been a key driver of revenue growth.-Reuters and TradeArabia News Service